In an ongoing collaboration, PayPal will now handle some credit and debit card transactions for Shopify Payments in the U.S.

The integration of PayPal’s wallet into Shopify Payments in the U.S. aims to bring together various merchant services such as payouts, reporting, and chargebacks under one solution. This follows a similar initiative PayPal launched for French shoppers a few years ago, with the U.S. integration expected to be operational soon, according to Alex Criss, PayPal’s President and CEO.

Integrating with Shopify

This move aligns with Criss’ strategy since taking over as CEO, noted Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. While his predecessor Dan Shulman focused on expanding the user base through new users, Criss has concentrated on enhancing value and utility for existing PayPal users—both consumers and merchants.

Brokering Deals

Under Criss’ leadership, PayPal has recently struck deals with Adyen and Fiserv to incorporate PayPal Fastlane into their checkout processes. This one-click checkout service can speed up transactions by up to 40%, according to PayPal.

The company has also improved its debit card functionality, allowing use in brick-and-mortar stores and integration with Apple Wallet.

Improving the Customer Experience

This Shopify integration is expected to boost the payments platform. In Q2 24 alone, Shopify processed over $41.1 billion in gross payment volume, while PayPal’s more than 278 million U.S. users will significantly impact its platform.

Shopify’s third-party marketplace benefits from this partnership as it offers small businesses a secure payments option.

Apgar noted that the integration with Shopify and PayPal’s Fastlane product make payments easier for consumers while providing better fraud prevention for merchants. This reduces checkout friction, benefiting both parties by lowering cart abandonment rates and improving the overall customer experience at checkout.